KARACHI: The first oil tanker under a new Saudi facility allowing Islamabad to defer payments for oil imports would arrive in Pakistan in the third week of March, Pakistan’s minister for economic affairs Omar Ayub Khan has said.
On Wednesday, Saudi envoy to Islamabad Nawaf bin Said Al-Malki and Minister Khan met to discuss the oil loan facility and other issues.
“The Minister for Economic Affairs acknowledged the timely operationalization of Saudi Oil Facility of $ 1.2 billion for import for petroleum products on one-year deferred payment basis,” the economic affairs division said in a statement.
“Under this facility, Pak Arab Refinery Limited (PARCO) and National Refinery Limited (NRL) will import petroleum products up to $ 100 million per month from Saudi Arabia. It was further informed that the first Oil Tanker was expected to be arrived in Pakistan in the 3rd week of March, 2022.”
The financing agreement for the oil facility was signed last November between the Saudi Fund for Development (SFD) and the Economic Affairs Division (EAD) of Pakistan. As per the agreement, SFD will offer financing of up to $100 million per month for a year on the purchase of petroleum products on a deferred payment basis.
Pakistan is currently facing growing economic challenges, with high inflation, sliding forex reserves, a widening current account deficit and a depreciating currency.
Economic experts hope the early operationalization of the oil facility will help improve Pakistan’s “external payment position.”
